07-11-2006, 04:29 AM
AOA
nabeel
how r u?
ok
here is da reply...
In statement of changes of equity we take profit after tax
In ur case it wud be RS 7800
Here is wat we wud in statement;
Unappropriated profit
Op bal ******************
N.P 4 da yr 7800
Cl bal *****************
We wonât take any tax in statement of equity B/C tax expense is not charged to equity but to P/Lâ¦got it
For ur convenience here I go further
And the rule is that items of expenses ad income which are recognized directly in equity are shown in statement of changes in equity
Look what IAS 1 says about statement of changes in equity
<u><b>Statement of changes in equity (S.O.C.E)</b></u>
An entity shall show following items on face of S.O.C.E 1.96
(a) Profit or loss for the period;
(b) Each item of income & expense for the period that is recognized directly in equity, and the total of these items;
(c) Total income and expense for the period (calculated as the sum of (a) and (b)), showing separately the total amounts attributable to equity holders of the parent and to minority interest; and
(d) For each component of equity, the effects of changes in accounting policies and corrections of errors recognized in accordance with IAS 8. 1.96
An entity shall present following on face of S.O.C.E or notes 1.97
(a) The amounts of transactions with equity holders acting in their capacity as equity holders, showing separately distributions to equity holders;
(b) The balance of retained earnings (i.e. accumulated profit or loss) at the beginning of the period & B/S date, and the changes during the period; and
(c) A reconciliation between the carrying amount of each class of contributed equity & each reserve at the beginning and the end of the period, separately disclosing each change.
Changes in equityâs entity
Changes in an entityâs equity between two balance sheet dates reflect the increase or decrease in its net assets during the period. 1.98
Except for changes resulting from transactions with equity holders acting in their capacity as equity holders (such as equity contributions, reacquisitions of the entityâs own equity instruments and dividends) and transaction costs directly related to such transactions,
the overall change in equity during a period represents the total amount of income and expenses, including gains and losses, generated by the entityâs activities during that period (whether those items of income and expenses are recognized in profit or loss or directly as changes in equity). 1.98
Examples of items in S.O.C.E1.99
This Standard requires all items of income and expense recognized in a period to be included in profit or loss unless another Standard or an Interpretation requires otherwise.
Other Standards require some gains and losses (such as
⢠revaluation increases and decreases,
⢠particular foreign exchange differences,
⢠gains or losses on remeasuring available-for-sale financial assets, and
⢠related amounts of current tax and deferred tax)
to be recognized directly as changes in equity.
Because it is important to consider all items of income and expense in assessing changes in an entityâs financial position between two balance sheet dates, this Standard requires the presentation of a statement of changes in equity that highlights an entityâs total income and expenses, including those that are recognized directly in equity.1.99
Have a look at any statement of changes in equity
It wud go the same way
Hope it helps
However if u arenât clear u may ask further
nabeel
how r u?
ok
here is da reply...
In statement of changes of equity we take profit after tax
In ur case it wud be RS 7800
Here is wat we wud in statement;
Unappropriated profit
Op bal ******************
N.P 4 da yr 7800
Cl bal *****************
We wonât take any tax in statement of equity B/C tax expense is not charged to equity but to P/Lâ¦got it
For ur convenience here I go further
And the rule is that items of expenses ad income which are recognized directly in equity are shown in statement of changes in equity
Look what IAS 1 says about statement of changes in equity
<u><b>Statement of changes in equity (S.O.C.E)</b></u>
An entity shall show following items on face of S.O.C.E 1.96
(a) Profit or loss for the period;
(b) Each item of income & expense for the period that is recognized directly in equity, and the total of these items;
(c) Total income and expense for the period (calculated as the sum of (a) and (b)), showing separately the total amounts attributable to equity holders of the parent and to minority interest; and
(d) For each component of equity, the effects of changes in accounting policies and corrections of errors recognized in accordance with IAS 8. 1.96
An entity shall present following on face of S.O.C.E or notes 1.97
(a) The amounts of transactions with equity holders acting in their capacity as equity holders, showing separately distributions to equity holders;
(b) The balance of retained earnings (i.e. accumulated profit or loss) at the beginning of the period & B/S date, and the changes during the period; and
(c) A reconciliation between the carrying amount of each class of contributed equity & each reserve at the beginning and the end of the period, separately disclosing each change.
Changes in equityâs entity
Changes in an entityâs equity between two balance sheet dates reflect the increase or decrease in its net assets during the period. 1.98
Except for changes resulting from transactions with equity holders acting in their capacity as equity holders (such as equity contributions, reacquisitions of the entityâs own equity instruments and dividends) and transaction costs directly related to such transactions,
the overall change in equity during a period represents the total amount of income and expenses, including gains and losses, generated by the entityâs activities during that period (whether those items of income and expenses are recognized in profit or loss or directly as changes in equity). 1.98
Examples of items in S.O.C.E1.99
This Standard requires all items of income and expense recognized in a period to be included in profit or loss unless another Standard or an Interpretation requires otherwise.
Other Standards require some gains and losses (such as
⢠revaluation increases and decreases,
⢠particular foreign exchange differences,
⢠gains or losses on remeasuring available-for-sale financial assets, and
⢠related amounts of current tax and deferred tax)
to be recognized directly as changes in equity.
Because it is important to consider all items of income and expense in assessing changes in an entityâs financial position between two balance sheet dates, this Standard requires the presentation of a statement of changes in equity that highlights an entityâs total income and expenses, including those that are recognized directly in equity.1.99
Have a look at any statement of changes in equity
It wud go the same way
Hope it helps
However if u arenât clear u may ask further
